Turned an Investment into a Trade!
Bob
There are many rules when it comes to trading. One big one that I like to follow is
Don’t turn a trade into an investment and don’t turn an investment into a trade
Well… I broke my rule a few days ago. I had 1000 shares in AIB and planned to hold it for the long term. My cost basis was around $3.45 and I like the assets that the bank has. Well, while paying attention to short term news, I decided that a 40%+ gain was great and traded out of my position.
At this point AIB is at $6.87 and I am sick over not owning shares. Remember, I traded out 3 days ago at $5.34. I HATE MISSING A GAIN!!
My mistake in this case was that I took in all the short term news as if this position was a trade and I acted on that information. Big mistake. When you hold an ‘investment’ leave it at that. If any news will not impact your shares over your long term time horizon, ignore it! Because I took in some short term news on AIB and bailed (with a nice gain) I left more than $1,500 on the table.
Once again (this is for me, not you) “Don’t turn an investment into a trade and don’t turn a trade into an investment”
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